Liberia: Road Fund Reports U.S.$203m in Active Contracts
The National Road Fund of Liberia (NRF) has disclosed that it currently has about 130 valid contracts valued at more than US$203 million, with US$121 million already disbursed and approximately US$81 million remaining in outstanding contractual commitments.
NRF Manager Joseta Neufville-Wento made the disclosure during the Executive Budget Hearing at the Ministry of Finance and Development Planning, where the Road Fund presented its achievements, financial position and priorities for the coming fiscal year.
The hearing was presided over by Finance and Development Planning Minister Augustine Kpehe Ngafuan, who described the Road Fund as an important institution because of its dual role in mobilizing revenue and financing road-related expenditures.
Minister Ngafuan thanked the NRF management for its efforts to generate resources for road development and maintenance, emphasizing that strengthening the revenue side of government operations is critical to expanding public expenditure and advancing the country's development agenda.
"The revenue side is very important because it is that side that enables us to move on the expenditure side," Minister Ngafuan said.
He said the Ministry expects the Road Fund to play an increasingly important role in future budget engagements because of its responsibility for mobilizing resources for the road sector.
Minister Ngafuan said the Road Fund was deliberately given the opportunity to make its presentation as the final session of the day's budget hearings because of the significance of its mandate.
"We decided to save the best for last," he said while encouraging the NRF team to proceed with its presentation.
Presenting the Road Fund's performance, Mrs. Neufville-Wento said the NRF currently has approximately 130 valid contracts under which payments are being made.
She placed the total value of those contracts at slightly more than US$203 million. Of that amount, US$121 million has already been disbursed, while outstanding contractual commitments stand at approximately US$81 million.
According to Mrs. Neufville-Wento, the figures demonstrate the significant financial requirements of maintaining and developing Liberia's road infrastructure and the need for the Road Fund to strengthen its revenue-generation capacity.
She said the NRF's resources remain insufficient to meet the growing demands of the country's road sector, making revenue expansion and diversification increasingly important.
Mrs. Neufville-Wento also reported a three-percent increase in Road Fund revenue compared with the previous year.
She credited the Liberia Revenue Authority for its role in helping the country improve revenue collection.
Beyond its financial responsibilities, she said the Road Fund has been making direct contributions to employment and community empowerment.
According to the NRF manager, about 3,000 jobs have so far been tracked through community-based programs supported by the Road Fund.
She emphasized that the figure represents actual people employed through various interventions rather than merely projected employment numbers.
The jobs include opportunities created through community-based organizations designed to empower young people in communities where road projects are being implemented.
The Road Fund has also established an internship program for young professionals.
Mrs. Neufville-Wento said the program has recruited approximately 90 qualified young professionals and currently has a retention rate of about 97 percent among those assigned to various institutions and work locations.
She said the internship initiative is intended to provide skilled young Liberians with practical professional experience, while community-based programs provide employment opportunities for people engaged in labor-intensive activities.
One of the major initiatives highlighted during the presentation was the Road Fund's digital transformation program.
Mrs. Neufville-Wento said the NRF has redesigned its website to provide greater public access to information about projects being financed through the Fund.
The new system includes a digital dashboard and interactive map showing road projects across Liberia.
According to her, users will be able to identify projects by county and access information including the length of a road project, the contractor responsible, the condition of the road and other relevant project details.
She said the initiative is intended to strengthen transparency and accountability because the projects are being financed with public resources.
"It's just fair enough that people know what roads the government is paying for," Mrs. Neufville-Wento said.
She explained that the system also has a back-end dashboard containing detailed information about individual contracts and their implementation.
The NRF is also establishing a digital library to preserve studies, research and technical reports financed by the government and the Road Fund.
Mrs. Neufville-Wento said the initiative is intended to prevent valuable research from being lost whenever there is a change in government or institutional leadership.
She noted that Liberia has spent millions of dollars over the years on studies and research, but some of the information is not easily accessible when new projects are being developed.
Under the digital library initiative, research materials, including geotechnical reports and other technical studies, will be stored electronically and made available for future infrastructure development.
She said the system could also generate revenue for the Road Fund.
According to her, companies, investors, researchers and other users seeking specialized information could pay a fee to access selected studies and datasets.
The information could include traffic counts, vehicle registration data and other technical information relevant to road and infrastructure planning.
Mrs. Neufville-Wento said the initiative could also support students and researchers conducting technical studies.
The NRF manager also highlighted the Fund's role in financing the procurement of yellow machines for road construction and maintenance.
She said the Road Fund worked closely with the Ministry of Public Works and the Ministry of Finance and Development Planning to make financing available for the procurement of the equipment within approximately two months.
According to her, the Road Fund has paid in full for the yellow machines and is working on mechanisms that could generate revenue from their use.
She stressed that the procurement was the result of a coordinated effort involving several government institutions rather than the Road Fund acting alone.
Mrs. Neufville-Wento said the development of professional capacity within the Road Fund has also remained a priority under her leadership.
She said staff members have been undergoing training and pursuing professional certifications to meet international standards.
The areas of specialization include finance, road planning, asset management, quality assurance and control, project management and infrastructure funding.
She said strengthening staff capacity is necessary to ensure that the institution has the technical expertise required to effectively manage Liberia's road infrastructure financing.
A major concern raised during the presentation was the NRF's heavy dependence on the petroleum levy.
Mrs. Neufville-Wento said approximately 97 percent of the Road Fund's revenue is currently generated from the petroleum levy.
She warned that changes in vehicle technology, including the growing use of fuel-efficient vehicles and efforts to reduce carbon emissions, could eventually affect petroleum consumption and, consequently, the revenue available to the Road Fund.
She said the NRF has therefore begun examining alternative revenue sources to ensure the sustainability of road financing over the coming decade.
Among the areas being considered are aviation, fiber-optic infrastructure, tourism, logistics, green energy and digital or smart infrastructure.
Mrs. Neufville-Wento said the aviation sector presents an opportunity for revenue generation and investment.
She noted that the Ministry of Transport is represented on the Road Fund's board and said the Fund is reviewing proposals related to airport infrastructure, including an investment proposal estimated at US$11.5 million.
She said Liberia could explore mechanisms through which airport-related investments generate revenue to support infrastructure development.
The Road Fund is also considering opportunities in the tourism sector, given the close relationship between road infrastructure and access to tourist destinations.
According to Mrs. Neufville-Wento, improved roads make it easier for visitors and residents to reach tourism sites, creating opportunities for investment and revenue generation.
Another area under consideration is the installation of conduits for fiber-optic infrastructure alongside major road projects.
Mrs. Neufville-Wento said the government has incurred significant costs in relocating or compensating telecommunications and other utility providers when infrastructure projects affect existing fiber lines, water pipes and sewer systems.
She said the Road Fund is exploring a more coordinated approach under which conduits would be incorporated into road designs from the beginning.
Such infrastructure, she said, could reduce future disruptions and provide greater government oversight of critical infrastructure.
The NRF is also exploring green energy, logistics and smart infrastructure as potential areas for revenue diversification.
Mrs. Neufville-Wento said the Road Fund is also transitioning toward a paperless operating system.
She disclosed that the institution has launched an electronic document management system that allows documents to be received and processed digitally.
She said the initiative is expected to improve efficiency, reduce paperwork and strengthen the management of contracts and other financial transactions.
The Road Fund is also exploring the use of artificial intelligence and other digital technologies to improve its operations.
Mrs. Neufville-Wento said the various proposals form part of a broader strategy to reduce the institution's dependence on a single revenue source and build a more sustainable financing mechanism for Liberia's road sector.
She said the NRF intends to explore opportunities for investing in small seed funds and other initiatives capable of generating additional revenue for road development and maintenance.
Read the original article on Liberian Observer.